Tom Lee: Ethereum is starting a super cycle just like Bitcoin.

Recent fluctuations in the cryptocurrency market may stem from a significant gap related to market makers. Noting that this situation is an important factor in the process of withdrawing crypto assets, Tom Lee is highlighting the key points that investors should pay attention to in the Fall period.

Lee, who is the President of BitMine Immersion Technologies and the research director at Fundstrat, stated that these sharp fluctuations in the crypto markets are caused by some large investors attempting to trigger liquidations in the markets. While this process may lead to short-term pains, he emphasized that investors should not lose sight of the bigger picture.

Lee argued that a strong structure is forming for Ethereum on the Wall Street side, and this situation has initiated a long-term super cycle for Ethereum. Reminding that Bitcoin has experienced pullbacks over 50% six times and over 75% three times in its history, Lee expressed that volatility is inherent to this market. He stated that the opportunity for investors to achieve significant gains often relies on those who remain patient.

However, Lee's long-term optimistic outlook regarding Ethereum has faced some criticism within the crypto community. Some Bitcoin advocates claimed that Ethereum lacks unique utility and that there are hundreds of blockchains with similar features. Nevertheless, while Lee refrained from giving a price target, he stressed that Ethereum's upward path will not be linear. It is clear that strong use cases and institutional adoption will be the true test of this thesis.

In the upcoming period, the sustainable growth of on-chain activity in Ethereum and layer 2 networks is considered a critical indicator for the market. Lee believes that the current market stress is temporary and predicts that a recovery could begin within 6 to 8 weeks after Thanksgiving. During this period, he particularly advises investors against using leverage.